3M Gets Slammed On Earnings
InTheMoneyStocks.com | Oct 23, 2018 01:18PM ET
3M Company (NYSE:MMM) took a hit Tuesday after it reported earnings that disappointed the street. There is also chatter that a stronger U.S. dollar hurt the company's earnings.
Traders should note that 3M stock peaked out in late January 2018 at $259.77 a share. Since that high price in the shares, the stock has sunk lower by more than 27 percent. The stock is now trading below its important 50- and 200-day moving averages. While this is certainly a sign of weakness, the 200-week moving average was also tested and so far has held as support. A break below this key level on a weekly closing basis should signal more downside for the stock. The next major support level will be around the $170 area. This important support level is where the stock was defended in November 2016. Very often, when a stock back-tests a key pivot it will be defended by the institutional money.
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